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Lyfe cycle employment and fertility across institutional environments

Lyfe cycle employment and fertility across institutional environments
Lyfe cycle employment and fertility across institutional environments
Recent empirical evidence show considerable variation in the degree of labor market participation of women during childbearing across different countries. In order to investigate this issue, we analyze intertemporal employment patterns and its interaction with fertility, comparing countries which share labor market institutional characteristics as well cultural characteristics but differ in several child care policies. We using panel data from the European Panel 1994-2001 and analyze a discrete choice model which allows for permanent unobserved heterogeneity, AR(1) serially correlated errors and state dependence. The dynamic model is estimated by simulated maximum likelihood, using an algorithm that deals with the initial conditions problem and corrects for biases that arise from classification errors in reported discrete outcomes. We analyze the robustness of the results from the different estimation methods in measuring the degree of state dependence of labor market participation in Italy, Spain and France. We find that persistence is stronger where participation is lower, confirming that in countries where the costs of adjusting employment levels from a period to the next, the proportion of women who are excluded from the labor market is larger. We attribute these differences to the lack of child care policies and the more rigid labor market regulations in Italy and Spain which affect the patterns of labor market attachment during child bearing.
labour market decisions, fertility, child care
Université Paris 1
Boca, Daniela del
b1046157-5f0d-4fc3-a1f1-f38b9270ab4f
Sauer, Robert
11c87254-ac8e-4f4e-aad9-b0f3ab1aeabb
Boca, Daniela del
b1046157-5f0d-4fc3-a1f1-f38b9270ab4f
Sauer, Robert
11c87254-ac8e-4f4e-aad9-b0f3ab1aeabb

Boca, Daniela del and Sauer, Robert (2005) Lyfe cycle employment and fertility across institutional environments Université Paris 1

Record type: Monograph (Project Report)

Abstract

Recent empirical evidence show considerable variation in the degree of labor market participation of women during childbearing across different countries. In order to investigate this issue, we analyze intertemporal employment patterns and its interaction with fertility, comparing countries which share labor market institutional characteristics as well cultural characteristics but differ in several child care policies. We using panel data from the European Panel 1994-2001 and analyze a discrete choice model which allows for permanent unobserved heterogeneity, AR(1) serially correlated errors and state dependence. The dynamic model is estimated by simulated maximum likelihood, using an algorithm that deals with the initial conditions problem and corrects for biases that arise from classification errors in reported discrete outcomes. We analyze the robustness of the results from the different estimation methods in measuring the degree of state dependence of labor market participation in Italy, Spain and France. We find that persistence is stronger where participation is lower, confirming that in countries where the costs of adjusting employment levels from a period to the next, the proportion of women who are excluded from the labor market is larger. We attribute these differences to the lack of child care policies and the more rigid labor market regulations in Italy and Spain which affect the patterns of labor market attachment during child bearing.

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Published date: 2005
Keywords: labour market decisions, fertility, child care

Identifiers

Local EPrints ID: 35072
URI: https://eprints.soton.ac.uk/id/eprint/35072
PURE UUID: 51f5a00c-a9b8-4c9d-a6f4-868f4d12de7d

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Date deposited: 19 May 2006
Last modified: 30 Jul 2018 16:31

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